Diana Shipping, Inc., a global shipping company specializing in the transportation of dry bulk cargoes, announced that it has entered into a time charter contract with Cargill International S.A., Geneva, for one of its Panamax dry bulk carriers, the Alcyon, at a gross rate of US$34,500 per day for a minimum 57 to a maximum 60 month period.

This employment is anticipated to generate approximately US$59 million of gross revenues for the minimum scheduled period of the charter. The charter is expected to commence in the second half of February, 2008.

Diana Shipping Chairman and Chief Executive Officer, Simeon Palios, commented: “Market conditions today remain firm and the fundamentals regarding the short term provide cause for strong optimism. Nevertheless, once again, the Company has to show self-discipline and continue the portfolio approach in the chartering of our vessels. Securing close to US$60 million in gross charter revenue for the next five years for one of our vessels is an example of the flexibility of our chartering strategy and increases further the visibility of our earnings out to 2012. We are optimistic about the prospects of finding attractive fixtures for two additional Panamax vessels in our fleet that we will seek to re-charter in the days to come.”

The Alcyon is a 75,247 dwt Panamax dry bulk carrier built in 2001.